Feature

Opinion: Why iPhone game developers don't understand the difference between price and value

And why it's ruining your business

Opinion: Why iPhone game developers don't understand the difference between price and value
If I could claim a dollar for every time I've heard a developer complain gamers demand too much from one of its 99c game, I wouldn't even bother.

Despite the thousands of potential greenbacks piled high and me being a cynical critic, I know all about perceived and real value.

Claiming each of these notional dollars would no doubt involve filling out a form and either collection in person or an authenticated account that required the name and paw print of my second cousin's first cat to access. It would also massively piss off each developer who had to pay out.

The individual amount isn't the issue, it's the context that matters. Being wrong and having to pay money is the worst combination.

But back to the issue of what people expect from 99c games.

It's all relative

As per usual, developers are studying the problem from the wrong angle and in myopic detail.

The fact isn't that people are complaining about what you consider to be minor issues or omissions in your game. Some people will complain about anything. Most probably don't think your 99c game is lacking features per se. However, what they are thinking is your 99c game is lacking features compared to other 99c games on the App Store.

This is a big issue and one that has effectively killed 99c as a viable business model for all but the best developers.

Your 99c game isn't being compared to a McDonalds burger. It's not even being compared to the average 99c game in the same genre. It's being compared to the longevity offered by Doodle Jump, Angry Birds and Pocket God.

And if that wasn't bad enough, the rise of free-to-play games such as We Rule and FarmVille means the 99c price point - once viewed as ridiculous in terms of business model but at least sensible as the lowest barrier to entry for consumers - is still ridiculous as a business model and now a barrier to entry for consumers.

Solve this puzzle

Indeed, a recent release that further demonstrates why 99c doesn't work is The Jim & Frank Mysteries: The Blood River Files.

Much attention has focused on the fact it's been labelled a clone of Nintendo and Level-5's much loved and massively successful Professor Layton DS games.

Why anyone would disagree it's the case is unclear, but what's interesting is how various people have (industry insider / developer / publisher etc) grumpily pointed out that must be worth as much because it's the fortieth of the price, not realising that's the exact issue.

Removed from this context, there's no doubt The Jim & Frank Mysteries is worth 99c (technically this is actually its launch sale price), but it's precisely because this type of game demands a certain level of quality for acceptance that Professor Layton has sold millions of copies at $40.

At 99c, the lower quality The Jim & Frank Mysteries will be lucky to sell hundreds of thousands. It's not the price, it's the comparative value in terms of the quality of the experience that's important.

Even games experience the Veblen effect. 

Actions and reaction

Yet to bring such thoughts to a positive conclusion, this is why developers need to be seriously thinking about in-app purchases.

You might be lucky, but the chance of creating a massive App Store viral hit at 99c is low to zero. All games have their fans however, and they are prepared to spend a lot of money to extend their experience because it's providing them with value.

Using price as a method of demonstrating your game's value to the broad masses is finished unless you're giving it away for free. Instead, build methods to let players show you how much they value your games by proving how much they're willing to pay, not the other way around.

Not only will you end up making better games, but you'll make more money in the longrun too.
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.